Online Payments - A Cost-Effective Way To Grow Your Business

London, United Kingdom (PressExposure) December 22, 2009 -- After all, with credit card fraud on the rise, consumers may be reluctant to give you their details unless there’s the reassuring presence of a well-known online payment provider. If you’re thinking about accepting online credit card payments for your business, here are a few things that you need to know.

1. Think about the needs of your business. The internet is international, so shouldn’t you be? Choose an online payment system which can accept multiple currencies. 2. How are you expecting your business to grow? If you are likely to accept credit card payments over the phone, or even face-to-face, make sure that you choose an online payment provider that can deliver these services. 3. You’ll be asking your clients to hand over some extremely personal information, so make sure your online payment provider is a brand that people will recognise and trust.

Once you’ve chosen your online payments provider, you now need to open a merchant account. This is like a current account for your online payments. Once your merchant account is in place, you’ll then need what’s called a “payment gateway”. This is the system which allows you to actually accept credit card payments. Typically, you’ll pay an initial fee according to how many online payment transactions you are expecting, with additional transactions incurring a small fee.

There are a great many providers out there, so make sure that you shop around. RBS WorldPay, for example, is one of the largest payment services providers in Europe, catering for merchants both large and small. Their Business Gateway product offers 350 transactions for £19.95 a month, with additional transactions for just 28p. For more information on this product visit Business Gateway.

Merchant Account

Merchant accounts are the means by which businesses can accept credit and debit card online payments. Remember that, without a merchant account, the major credit card providers will not be able to transfer funds to your account, nor will you be able to automate your payment process.

Payment Gateway A payment gateway is the system that actually permits online payments for businesses. As well as offering the security of encryption, the payment gateway is linked up to the card-issuing banks, who release the credit and debit cards.

The process

To clarify, here’s how your online payments will be processed: 1) When purchasing, the customer is taken to an order form where they submit their payment information. 2) When the customer clicks “submit”, the payment information becomes encrypted and sent to the vendor’s payment gateway. 3) This information is then re-encrypted and sent to the vendor’s merchant account. 4) The data is again forwarded to the card-issuing bank for authorisation. 5) An authorisation code is then sent back along the chain (merchant account, then payment gateway) so that the transaction can be completed. The money then leaves the buyers account and arrive in the seller’s, via the merchant account.

About RBS WorldPay

RBS WorldPay is the unification of seven leading retail payment solutions brands – Streamline, Streamline International, Bibit, WorldPay, RiskGuardian, RBS Lynk and Payment Trust. RBS WorldPay is the leading payment acquirer in the UK and Europe, and the third largest in the world. It operates in over 40 countries, in 120 transaction currencies, in 14 settlement currencies. In 2007, RBS WorldPay processed 4.4 billion transactions worldwide. RBS WorldPay is part of the RBS Global Transaction Services business.

For further information please contact:
Lucy Ward at Weber Shandwick on 020 7067 0671 /

*About the research
The research was carried out in October 2009 and is based on the opinions of 255 retailers. The research commissioned by RBS WorldPay and undertaken by Pollab Limited in face to face interviews.

About The Royal Bank of Scotland Group

The RBS Group is one of the world's leading financial services companies providing a range of retail and corporate banking, financial markets, consumer finance, insurance, and wealth management services. RBS Group operates in over 50 countries across Europe, the Americas, Asia and the Middle East serving more than 40 million customers and employing more than 170,000 people. In addition to the provision of a full range of banking services under The Royal Bank of Scotland and NatWest brands, RBS Group also includes ABN AMRO, Citizens Financial Group, Ulster Bank, Coutts Group, Direct Line and Churchill.

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Press Release Submitted On: December 22, 2009 at 5:01 am
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